The Monetary Policy Committee of the Reserve Bank of India, chaired by Governor Sanjay Malhotra, finished its three-day meeting today. The committee reached a unanimous decision to maintain the current policy rates and stance. This announcement follows a period of significant economic developments, including the presentation of the Union Budget and the finalization of major international trade agreements.
Interest Rate Decision and Policy Stance The committee voted on the benchmark interest rates and the policy framework for the final quarter of the fiscal year.
Repo Rate Maintenance: The Reserve Bank of India held the policy repo rate at 5.25 percent. Consequently, the Standing Deposit Facility rate remains at 5.00 percent, and both the Marginal Standing Facility rate and the Bank Rate stay at 5.50 percent.
Voting Pattern: The decision to maintain the repo rate was taken unanimously by the six-member committee.
Policy Stance: The committee voted unanimously to continue with a neutral stance. This allows the central bank the flexibility to adjust policy in either direction based on incoming macroeconomic data.
Inflation and Growth Projections The monetary policy statement provided updated forecasts for the current and next fiscal years.
GDP Growth Forecast: Real GDP growth for the fiscal year 2025-26 is estimated at 7.4 percent. For the upcoming fiscal year 2026-27, the projection for Q1 is set at 6.9 percent and Q2 at 7.0 percent.
Inflation Outlook: The Consumer Price Index inflation projection for 2025-26 is placed at 2.1 percent. For 2026-27, the projections for Q1 and Q2 are set at 4.0 percent and 4.2 percent, respectively.
Data Series Revision: Governor Malhotra announced that future monetary policy decisions will be guided by a new statistical series for both GDP and inflation, which is scheduled for release in two days.
Regulatory and Development Measures The Reserve Bank of India introduced several measures to enhance consumer protection and market accessibility.
- Fraud Compensation Framework: The Governor proposed a new framework to compensate customers up to ₹25,000 for losses incurred in fraudulent transactions.
- Lending to REITs: The central bank will now allow banks to lend to Real Estate Investment Trusts under specific safeguards to support the real estate sector.
- MSME Support: The limit for collateral-free loans to MSMEs has been increased from ₹10 lakh to ₹20 lakh.
Disclaimer: The information provided in our blogs is for informational purposes only and should not be construed as financial, investment, or trading advice. Trading and investing in the securities market carries risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Copyrighted and original content for your trading and investing needs.
© 2026 — Tradejini. All Rights Reserved.
